This article from Business 2 Community titled Establishing A Small Business Marketing Budget by Rachel Anderson,discusses how small business owners overlooked the importance of setting a marketing a budget. Quite often even if a budget is set, businesses fail to determine how much to allocate.
Here are are a couple of key things things that business owners should consider when deciding how much to spend on marketing:
- Allocate a Marketing Budget
Your marketing budget will depend on the annual gross revenue of your business, generally anywhere from 3%-20% of your total revenue.
Your budget can also be affected by some other factors such as your length of time in the business, the type of industry you are involved in and the competition within the marketplace.
- Tracking your Budget
After you’ve set up an amount, make sure to measure the spend it through against the actual expenses report. By creating a Budget vs Actual report, owners can easily monitor whether they are staying within their means or over spending in certain areas. It is helpful to use financial software such as Xero in tracking your marketing budget.
Keep up the counting!
To read the full article, click here.